A New Fed Chair Has Taken Over 5 Times in the Last 50 Years. Here's the Stock Market's Track Record in the 12 Months After Each Transition.
S&P 500 performance is mixed following the appointment of a new Fed Chair, but it's economic conditions at the time that really drove returns.
A New Fed Chair Has Taken Over 5 Times in the Last 50 Years. Here's the Stock Market's Track Record in the 12 Months After Each Transition.
Overview
On May 22, Kevin Warsh was officially appointed Chair of the Federal Reserve. He takes over for Jerome Powell, who has held the spot since 2018. Warsh is the sixth Fed Chair to assume control since 1979. Preceding him:
A new Fed Chair generally creates uncertainty. Given the lengthy terms that Chairs often serve, the market usually has a pretty good sense of their thinking and what to expect from them. A new Chair may have different priorities and views on the economy. It's not out of the question that it could result in a policy pivot that catches the markets off guard.
Details
But while many investors may look at a new Fed Chair for guidance on how the markets might perform going forward, it's just one of many factors influencing stock returns.
Source
Originally published at www.fool.com.
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